Under what condition can Beem Light Sauna charge a Non-Compliance Fee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Manager), 13.8 (Transfer Upon Death, Incapacity, or Bankruptcy), or 14.2(b)(viii) (Other Remedies) or agree to manage your Studio at your request, you must pay us a management fee equal to 10% of your Gross Sales, plus our direct out-of-pocket costs related to such management (including the travel and living expenses of our representatives) (the "Management Fee"). The Management Fee is in addition to the other amounts due under this Agreement.
- 3.14 Non-Compliance Fee. If we determine that you have violated any of your obligations under this Agreement, including any failure to comply with any standards set forth in the Manuals, in addition to any other remedies we may be entitled to, we reserve the right to charge you one or more non-compliance fees (each, a "Non-Compliance Fee") upon written notice to you. The Non-Compliance Fee
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna can charge a Non-Compliance Fee if they determine that a franchisee has violated any of their obligations under the Franchise Agreement. This includes any failure to comply with the standards set forth in the manuals.
The Non-Compliance Fees will be specified in the manuals or in writing, and they cannot exceed $1,000 per single violation per day. These fees may be modified from time to time with written notice to the franchisee.
The fees can be charged repeatedly, potentially as frequently as daily, if the non-compliance is ongoing. The amount of the Non-Compliance Fee may vary based on the severity and number of the defaults, as well as whether the defaults have been repeated. Beem Light Sauna will provide written notice to the franchisee before charging a Non-Compliance Fee.
This means that franchisees must adhere to all requirements outlined in the Franchise Agreement and the operations manuals to avoid these fees. Franchisees should carefully review these documents and seek clarification from Beem Light Sauna on any points that are unclear to ensure full compliance and avoid potential Non-Compliance Fees.